1. You were able to obtain the following data from him: Cash sales for the past three months are as follows: P350 000, P385 000, and P450 000. 2. Based on his estimate, the cost of sales consisting of electricity and water is approximately P350 for every P1 000 of revenue. 3. All forms of equipment have an estimated life span of 10 years. 4. Utilities expense (other than what is consumed when customers do laundry) averages to P8 000 each month.
1. You were able to obtain the following data from him: Cash sales for the past three months are as follows: P350 000, P385 000, and P450 000. 2. Based on his estimate, the cost of sales consisting of electricity and water is approximately P350 for every P1 000 of revenue. 3. All forms of equipment have an estimated life span of 10 years. 4. Utilities expense (other than what is consumed when customers do laundry) averages to P8 000 each month.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 4E: Determine cash flows Natural Foods Inc. is planning to invest in new manufacturing equipment to make...
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